Tag Archives: Hong

Meituan-Dianping files for Hong Kong IPO; aims to raise over $4 billion: sources
June 25, 2018 6:16 am|Comments (0)

HONG KONG/SHANGHAI (Reuters) – China’s Meituan-Dianping, an online food delivery-to-ticketing services platform, is bringing its sizable initial public offering (IPO) to Hong Kong, where it aims to raise over $ 4 billion, three people with knowledge of the deal said.

Drivers of food delivery service Meituan are seen in Beijing, China April 11, 2018. Picture taken April 11, 2018. REUTERS/Stringer

The firm filed plans late on Friday for the city’s second multibillion-dollar tech float this year after smartphone maker Xiaomi Corp’s blockbuster IPO of up to $ 6.1 billion. Meituan-Dianping is also – after Xiaomi – the latest company with a dual-class share structure to file for a Hong Kong listing, under the city’s new rules designed to attract tech companies.

The Beijing-based firm, backed by gaming and social media company Tencent Holdings Ltd (0700.HK), was valued at around $ 30 billion in a fundraising round last year.

It is aiming for a $ 60 billion valuation with the IPO, though industry insiders said it may have difficulty reaching that target as it is still money-losing and relies on a cash-burning business model to boost growth.

The firm is likely to list in October, said the people, who declined to be identified as the information was not public.

Meituan-Dianping did not detail the amount of funds targeted or a time frame. It declined to comment on its planned IPO when contacted by Reuters.

Founded in 2010 by serial entrepreneur Wang Xing, Meituan, likened to U.S. discounting platform Groupon Inc (GRPN.O), in 2015 completed a $ 15 billion merger with Dianping, akin to U.S. online review firm Yelp Inc (YELP.N). It offers a broad range of services including movie ticketing, food delivery, hotel and travel booking as well as ride-hailing.

Competitors include food-delivery platform Ele.me, backed by e-commerce firm Alibaba Group Holding Ltd (BABA.N), and leading ride-hailing firm Didi Chuxing, backed by Japan’s SoftBank Group Corp (9984.T).

In its draft prospectus, which gave investors the first detailed look at its financial health ahead of the IPO, the company disclosed a 19 billion yuan ($ 2.9 billion) loss for 2017, steeper than in the previous two years.

Its adjusted net loss – which excludes the impact of fair value changes of convertible redeemable preferred shares and other items – was 2.85 billion yuan, smaller than losses of 5.35 billion yuan in 2016 and 5.91 billion yuan in 2015, the prospectus showed.

Revenue rose to 33.9 billion yuan in fiscal 2017, sharply higher than the 12.99 billion yuan made in the prior year.

Meituan-Dianping’s other backers include venture capital firms Sequoia Capital and DST Global, Singapore sovereign wealth fund GIC Pte Ltd and state-owned investment company Temasek Holdings (Private) Ltd, as well as the Canada Pension Plan Investment Board.

Currently, Chief Executive Wang Xing owns 11.4 percent of the company, while Tencent owns 20.1 percent and Sequoia Capital 11.4 percent. Wang will remain controlling shareholder after the listing, the prospectus showed.

Being holders of Class A shares, Wang and two other co-founders, Mu Rongjun and Wang Huiwen, will be beneficiaries of a weighted voting rights structure, or dual-class shares, which give greater power to founding shareholders even with minority shareholding. Each Class A share has 10 votes while each Class B share has one vote.

The firm has mandated Bank of America Merrill Lynch, Goldman Sachs Group Inc (GS.N) and Morgan Stanley (MS.N) to jointly sponsor its IPO. China Renaissance is the financial adviser.

Reporting by Adam Jourdan in Shanghai, Julie Zhu and Fiona Lau of IFR in Hong Kong, Aaron Saldanha in Bangalore, and Matthew Miller in BeijingEditing by Christopher Cushing and Edwina Gibbs

Tech

Posted in: Cloud Computing|Tags: , , , , , , , ,
A Rare Bird's-Eye View of Hong Kong's Vanishing Rooftop Culture
June 16, 2018 6:06 pm|Comments (0)

The district of Kowloon, Hong Kong, is a crowded place—there are 124,000 people packed into each of its 18 square miles. Apartments can be amazingly small. The dearth of parks doesn’t help. So Kowloonians use whatever space they can find, often escaping to the tops of buildings to walk their dogs, hang laundry, or just take a catnap.

Romain Jacquet-Lagrèze is one of them—only he takes to the roof with his camera, documenting unsuspecting strangers on shorter buildings below. The images appear in his stunning new book Concrete Stories. “It’s daily life stuff, but it’s surprising to see it on the roof,” he says.

Related Stories

Jacquet-Lagrèze grew up in the suburbs of Paris, where people have yards and cars, and can even see the stars. He sacrificed it all for love, moving into a 200-square-foot apartment in Kowloon eight years ago to be with his wife. Now they have just 400 square feet to call their own, but Jacquet-Lagrèze doesn’t mind. The city is inspiring, its density enabling him to create series like The Blue Moment, photographed from rooftops.

While shooting, Jacquet-Lagrèze often glimpsed others who were also out and about atop other buildings. As development began transforming the cityscape, he worried these communal rooftops could disappear. “This part of the city is now surrounded by modern buildings, and bit by bit these old buildings are being destroyed and replaced by really big, tall buildings with locked rooftops,” he says.

This—coupled with his sheer curiosity about the neighbors—inspired him to document rooftop culture while it’s still around. Twice a week over the last four years, he rode an elevator up a highrise with his Sony DSLR and a couple zoom and telephoto lenses. He hunkered down near a ledge, munching on a snack as he waited for people to appear. In the golden afternoon light, he photographed Kowloonians as they jumped rope, watered their plants, even burnt offerings to their ancestors.

If spying on such tender moments of solitude sounds creepy, Jacquet-Lagrèze says it’s par for the course on Kowloon’s rooftops. While shooting the series, he sometimes glimpsed people higher up watching him. “Whenever you are on the rooftop in the open air, you know there are hundreds, if not thousands, of windows potentially looking at you,” he says.

Kowloon is ridiculously crowded, even up in the air.


More Great WIRED Stories

Tech

Posted in: Cloud Computing|Tags: , , , , , , ,
Two Chinese bitcoin mining equipment makers plan $1 billion Hong Kong listings: IFR
May 15, 2018 6:00 am|Comments (0)

HONG KONG (Reuters) – Two Chinese bitcoin mining equipment makers plan to raise up to $ 1 billion each from Hong Kong listings this year, riding on strong global interest in cryptocurrencies, IFR reported on Tuesday, citing people familiar with the plans.

FILE PHOTO: A token of the virtual currency Bitcoin is seen placed on a monitor that displays binary digits in this illustration picture, December 8, 2017. REUTERS/Dado Ruvic//File Photo

Canaan Creative filed a listing application to the Stock Exchange of Hong Kong on Monday, IFR, a Thomson Reuters publication, reported.

Zhejiang Ebang Communication has also started working with advisers on a proposed Hong Kong float of up to $ 1 billon, reported IFR.

Ebang listed on China’s National Equities Exchange and Quotations, also known as the New Third Board, in 2015 and was

delisted from the over-the-counter market in March after announcing in January that it would seek a Hong Kong listing.

Chinese bitcoin mining equipment makers are hungry for capital to fund their growth as the heightened interest in cryptocurrencies has led to a surge in demand for their machines.

Canaan, which sells “Avalon” mining machines with customised super-fast ASIC chips, made revenue of more than 1 billion yuan in 2017. Although cryptocurrencies can be mined using regular computer equipment, specialised processing devices dedicated to mining are more effective and can generate more income.

The company’s co-chairman Jianping Kong told Reuters in April that he expected China’s push to promote the domestic chip industry to help drive growth for the company.

Credit Suisse, CMB International, Deutsche Bank and Morgan Stanley are joint sponsors for Canaan’s float, according to IFR.

Canaan Creative declined to comment. Ebang could not be immediately reached for comment. All the banks didn’t immediately respond to a request for comment.

Canaan’s IPO valuation has yet to be set as there is no listed comparable and the prices of cryptocurrencies have

fluctuated a lot, reported IFR. It was valued at $ 500 million in mid-2017, IFR said, attributing it to one of the people.

Reporting by Fiona Lau at IFR; Additional reporting by Sijia Jiang; Writing by Julie Zhu; Editing by Muralikumar Anantharaman

Tech

Posted in: Cloud Computing|Tags: , , , , , , , , ,
China's Xiaomi files for mega Hong Kong tech IPO, lifts lid on financials
May 3, 2018 6:00 am|Comments (0)

BEIJING/HONG KONG (Reuters) – Smartphone and connected device maker Xiaomi [IPO-XMGP.HK] filed for a Hong Kong initial public offering on Thursday that could raise $ 10 billion and become the largest listing by a Chinese technology firm in almost four years.

FILE PHOTO: The logo of Xiaomi is seen inside the company’s office in Bengaluru, India January 18, 2018. Picture taken January 18, 2018. REUTERS/Abhishek N. Chinnappa/File photo

Xiaomi’s IPO, which will be one of the first in Hong Kong under new rules to attract tech firm listings, is a major win for the bourse as competition heats up between Hong Kong, New York and the Chinese mainland.

The listing is expected to raise about $ 10 billion via the public offering, giving Beijing-based Xiaomi a market value of between $ 80 billion and $ 100 billion, people familiar with the plans told Reuters.

Those targets, if achieved, will make it the biggest Chinese tech IPO since Chinese internet giant Alibaba Group Holding Ltd (BABA.N) raised $ 21.8 billion in 2014.

Xiaomi’s prospectus gave investors the first detailed look at its financial health ahead of the much-hyped IPO, which could be launched as soon as end-June, according to the people close to the process who requested anonymity as the details were not yet public.

The numbers underscore how Xiaomi has remained resilient even as the global smartphone market has slowed, helped in part by a push overseas into markets like India.

The company said its revenue was 114.62 billion yuan ($ 18 billion) in 2017, up 67.5 percent against 2016. Operating profit for 2017 was 12.22 billion yuan, up from 3.79 billion yuan a year ago.

It made a net loss of 43.89 billion yuan versus a profit of 491.6 million yuan in 2016, though this was impacted by the fair value changes of convertible redeemable preference shares.

A man walks past a Xiaomi store in Shenyang, Liaoning province, China April 7, 2018. Picture taken April 7, 2018. REUTERS/Stringer

Alongside smartphones, Xiaomi makes dozens of internet-connected home appliances and gadgets, including scooters, air purifiers and rice cookers, although it derives most of its profits from internet services.

Its relatively cheap handsets pose a rising challenge to market leaders Samsung Electronics Co Ltd (005930.KS) and Apple Inc (AAPL.O).

Xiaomi doubled its shipments in 2017 to become the world’s fourth-largest smartphone maker, according to Counterpoint Research, defying a global slowdown in smartphone sales.

It is also making a big push outside China’s borders, with 28 percent of its sales derived from overseas markets last year, up from 6.1 percent in 2015.

Yet margins on its smartphones are razor-thin. Xiaomi posted a gross profit margin of just 8.8 percent for its smartphone business in 2017 compared to 60 percent for its internet services business.

According to some analyst estimates, Apple’s flagship iPhone X and iPhone 8 have gross margins of around 60 percent.

The company makes the lion’s share of its profit – 60 percent – from internet services, including gaming and advertising linked to its homegrown user interface, MIUI, which had 190 million monthly active users as of March 2018.

DUAL-CLASS SHARES

Xiaomi’s listing plans come as the company and its investors look to capitalize on a bull run for the Hong Kong market, which has seen the benchmark Hang Seng Index rise about 27 percent over the past year.

Armed with the new rules allowing the listing of companies with dual-class structures, Hong Kong is eyeing several tech listings that are expected in the coming two years from Chinese firms with a combined market cap of $ 500 billion.

Xiaomi said in its IPO application the company would have a weighted voting rights (WVR) structure, or dual-class shares. The WVR give greater power to founding shareholders even with minority shareholding.

The structure would allow the company to benefit from the “continuing vision and leadership” of the dual-class share beneficiaries, who would control the company for its “long-term prospects and strategy”, it said.

Dual-class shares have been a contentious topic in Hong Kong since the city’s strict adherence to a one-share-one-vote principle cost it the float of Alibaba, which instead listed in New York.

Xiaomi is also likely to be among the first Chinese tech firms seeking a secondary listing in its home market, using the planned China depositary receipts route, two people with knowledge of the matter said.

CLSA, Morgan Stanley and Goldman Sachs Group Inc are sponsoring Xiaomi’s IPO.

($ 1 = 6.3610 Chinese yuan renminbi)

Reporting by Cate Cadell in Beijing, Julie Zhu in Hong Kong and Rushil Dutta in Bengaluru; Writing by Sumeet Chatterjee; Editing Stephen Coates

Tech

Posted in: Cloud Computing|Tags: , , , , , , , ,
Hong Kong fund says Toshiba chip unit worth more than $30 billion
April 6, 2018 6:01 am|Comments (0)

TOKYO (Reuters) – A Hong Kong-based activist investment fund opposed to Toshiba Corp’s (6502.T) sale of its chip unit to a Bain Capital-led group said the deal should be renegotiated at a valuation of 3.3 trillion yen to 4.4 trillion yen ($ 30 billion-$ 41 billion).

FILE PHOTO – The logo of Toshiba Corp. is seen at the company’s facility in Kawasaki, Japan February 13, 2017. REUTERS/Issei Kato/File Photo

Argyle Street Management said on Friday that the current deal, which values the unit at 2 trillion yen, was agreed upon when Toshiba was desperate for cash. Toshiba is no longer insolvent, and was free to terminate the deal without incurring any penalty because the sale had not closed by a March 31 deadline, it said.

Toshiba should aim to list the unit if the Bain group will not agree to a higher price, it added.

Reporting by Makiko Yamazaki; Writing by Ritsuko Ando; Editing by Edwina Gibbs

Tech

Posted in: Cloud Computing|Tags: , , , , , , , , , ,
Hong Kong arm of China's LeEco files for liquidation
December 21, 2017 12:54 pm|Comments (0)

HONG KONG (Reuters) – A Hong Kong arm of embattled Chinese tech conglomerate LeEco has filed a petition to the territory’s high court to wind up the company, media in the Asian financial hub said on Thursday.

LE Corporation Limited, a unit of LeEco, has applied to liquidate the business according to court documents, government-owned Radio Television Hong Kong and other local media said.

LE Corporation could not immediately be reached for comment. The customer service hotline listed on its website did not appear to be working.

LeTV Sports Culture Develop (Hong Kong) CO. Limited, another LeEco unit in Hong Kong that broadcasts sports events, said on its Facebook page that its operations were unaffected by LE Corporation’s application for liquidation as it is a separate entity.

It said it would continue its NBA basketball and Premier League soccer broadcasting business in the city under the brand name LeSports HK.

LeEco, an entertainment, electronics and electric vehicles group founded by Jia Yueting, has struggled to pay its debts after rapid expansion led to a cash crunch, share price plunge and multiple defaults.

In Hong Kong, LeEco sold smart phones, internet TVs and online content. At its peak in early 2016, the group employed hundreds across several subsidiaries in the city, which was its Asia Pacific headquarters.

Cheng Shisheng, a Beijing-based spokesman for LeEco, told Reuters by phone that he now only works for LeEco’s car business and declined to comment on all matters related to LeEco Hong Kong’s situation.

Reporting by Sijia Jiang; Editing by Clarence Fernandez and Keith Weir

Tech

Posted in: Cloud Computing|Tags: , , , , ,
Microsoft, NTT team up to offer hybrid cloud solution in Hong Kong
August 23, 2016 1:20 pm|Comments (0)

A public cloud is based on the standard cloud computing model, where a service provider such as Microsoft or Dropbox makes storage available to …


RSS-1

Posted in: Web Hosting News|Tags: , , , , , , ,